Summary of 2014 changes

2014 medical plan options:

Replace current plans with three new options, including two high-deductible plans that qualify for a tax-free health savings account (HSA).

Purdue Health Plan:

Provides care at the Center for Healthy Living for a simple, flat fee of $10 per visit.

Has a $750 employee-only deductible and a $1,500 deductible for an employee plus one or more covered family members.

After employee meets the applicable deductible, the plan pays 80 percent of eligible expenses and the employee pays 20 percent.

Has a $2,400 employee-only out-of-pocket maximum and a $4,800 maximum for employee plus one or more covered family members.

Plan does not include a health savings account (HSA).

Purdue Health Plan Plus HSA 1:

Provides care at the Center for Healthy Living for a simple, flat fee of $45 per visit.

Has a $1,750 employee-only deductible and a $3,500 deductible for an employee plus one or more covered family members.

After employee meets the applicable deductible, the plan pays 80 percent of eligible expenses and the employee pays 20 percent.

Has a $3,500 employee-only out-of-pocket maximum and a $7,000 maximum for employee plus one or more covered family members.

Purdue contributes to the employee’s HSA: $650 for employee-only coverage and $1,300 for an employee plus one or more covered family members. Employees may also contribute tax-free money to the HSA, up to the annual combined IRS limit.

Purdue Health Plan Plus HSA 2:

Provides care at the Center for Healthy Living for a simple, flat fee of $45 per visit.

Has a $2,500 employee-only deductible and a $5,000 deductible for an employee plus one or more covered family members.

After employee meets the applicable deductible, the plan pays 75 percent of eligible expenses and the employee pays 25 percent.

Has a $5,000 employee-only out-of-pocket maximum and a $10,000 maximum for employee plus one or more covered family members.

Purdue contributes to the employee’s HSA: $650 for employee-only coverage and $1,300 for an employee plus one or more covered family members. Employees may also contribute tax-free money to the HSA, up to the annual combined IRS limit.

All plans:

Use a deductible and coinsurance arrangement, rather than a copay arrangement, except for service at the Center for Healthy Living

Use the same provider network

Cover generic, preventive prescription drugs at no charge to the employee

Combine medical and prescription expenses to meet the deductible and out-of-pocket maximums

Provide Vision Service Plan coverage

Reasons behind 2014 medical plan options:

Adjusts to meet the requirements of the Affordable Care Act.

Modernizes our plans to encourage employees to be better health care consumers, which will help reduce or curb expenses to the medical plans.

Maintains a lower-deductible choice to give employees the option to have a more conventional plan by paying a higher premium.

Adds another high-deductible plan with an HSA to give employees an additional low-premium medical plan option.

2014 medical plan premiums:

Individuals covering just themselves, regardless of earnings, will pay $0 premium if they select coverage under the Purdue Health Plan Plus HSA 2.

All employees will see a decrease in premiums by enrolling in the Purdue Health Plan Plus HSA 2. Many will see a decrease even by changing to the Purdue Health Plan Plus HSA 1.

Employees who cover a spouse/same-sex domestic partner or family and enroll in the Purdue Health Plan will see an increase in their premiums.

Reasons behind 2014 premiums:

Adjusts for increases in medical plan claims, plus an estimated $2.8 million in added fees and claims due to the Affordable Care Act.

Meets the Board of Trustees prescribed 80/20 premium split between the University and employees. For 2013, the University has been paying 83 percent of the premium overall, and employees have been paying 17 percent of the premium overall.